Google Announces $15 Billion Investment for AI Data Hub in India

Tue Oct 14 2025 16:18:56 GMT+0300 (Eastern European Summer Time)

In a significant move to enhance AI infrastructure, Google will invest $15 billion in a new AI data hub in Visakhapatnam, Andhra Pradesh, marking a major step in global AI expansion.

Google's parent company, Alphabet, is set to invest $15 billion to develop an AI data hub in Visakhapatnam, Andhra Pradesh. This facility will form part of the company's extensive network of AI centers worldwide, highlighting India's critical role in the global data center landscape. The investment is aimed at bolstering AI capabilities and fostering innovation in the region, with a focus on renewable energy and expanded internet connectivity.

Google's parent company Alphabet will invest $15 billion (£11.29 billion) to establish an AI data hub in Andhra Pradesh, India. The facility will be located in the port city of Visakhapatnam and is expected to be the largest AI hub Google has developed outside of the United States.

Thomas Kurien, CEO of Google Cloud, announced this development during a recent event in New Delhi, stating that the investment will be allocated over the next five years.

This announcement comes amid ongoing discussions in the U.S. about prioritizing domestic investments, with President Donald Trump urging American companies to focus on their home market.

India is increasingly regarded as an essential destination for AI and data centers, largely due to its low data costs and a rapidly growing internet user base. Alphabet CEO Sundar Pichai mentioned that the new infrastructure would enhance access to advanced technologies for Indian enterprises, driving innovation and economic growth.

A formal agreement to initiate the project will be signed, according to state officials. Andhra Pradesh Technology Minister Nara Lokesh described the development as a significant milestone for the state's digital future and its global positioning.

The project will integrate cloud and AI services with renewable energy solutions and a broader fiber-optic network aimed at enhancing digital connectivity.

Furthermore, the Andhra Pradesh government has been providing incentives, including subsidized land and electricity, to attract global investors. The state's ambition includes a goal of developing 6GW of data center capacity by 2029.

India's data center industry has expanded dramatically in recent years, with growth marking a nearly threefold increase since 2019, reflecting the country's potential as a hub for global tech innovation.